Banks can charge interest on loans disbursed from April: BB

The Bangladesh Bank has asked the commercial banks that they can charge reasonable interest to their clients on loans disbursed from April.

On May 3, the central bank in a circular suspended the collection of interest on all types of bank loans for two months to deal with business losses caused by the coronavirus.

But this facility will be applicable to loans taken before March 31 of the current year, clarified another BB circular issued on Monday.

That means the interest of the loans disbursed after April 1 can be recovered as per the appropriate rules, as the new guideline suggested.  

The central bank stated that the directive was issued under the powers conferred by Section 45 of the Banking Companies Act, 1991.

Earlier on May 3, the Bangladesh Bank issued a circular suspending interest on all types of loans for two months.

It said the government had announced a number of stimulus packages, including low-interest loans through the banking system, to rescue and keep the country's economic activities afloat in the face of the potential economic impact of the coronavirus outbreak.

However, at the moment, it has been decided to suspend the interest for two months from April 1 to May 31 on all types of loans or investments, the circular read.  

It added that banks won’t charge any interest to their customers until further instructions in this regard.

sk/at/teb